Announcement of IFC, Malawian, European Investors Help Finance INDEBANK Expansion on December 4, 1978

International Finance Corporation • 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-393-6360 IFC Press Release No.79/17 Monday, December 4, 1978 IFC, Malawian, European Investors Help Finance INDEBANK Expansion Malawian and European development finance institutions and the International Finance Corporation (IFC) are providing $5.4 million to the Investment and Development Bank of Malawi (INDEBANK) as part of a $8.5 million expansion program that will permit it to almost double new project approvals over the next five years. The Chairman of INDEBANK, Mr. D.Z.U. Tembo, announced that the bank has signed agreements with IFC and each of the sponsors, Agricultural Development and Marketing Corporation (ADMARC); Commonwealth Development Corporation (CDC) of the United Kingdom; Netherlands Finance Company for Developing Countries (FMO) of the • Netherlands; and German Development Company (DEG) of Germany for further additional finance totalling $5.4 million. The additional financial support together with a World Bank loan of $3 million signed on July 7, 1978, will increase the financial resources of INDEBANK by 46.2 percent to $26. 7 million, significant'iy increasing its ability to provide loan plus equity financing to businesses in Malawi. IFC, an affiliate of the World Bank, agreed to purchase $600,000 of newly issued share capital. Each of the sponsors will subscribe fo.r a further $300,000 / in ordinary shares together with a further $900,000 by way of Kwacha income notes or sterling loan. In 1977 the European Investment Bank made available three million European units of account. INDEBANK was founded in 1972 by ADMARC, a Malawian Government agency, CDC, DEG·and FK>. Its principal objectives are to promote industry, agriculture and commerce in Malawi through medium and long-term finance and equity investment, principally in medium-sized businesses. In mid-1978 INDEBANK had outstanding in- vestments and counnitments totaling over $16.6 million in some 28 projects through- out the country. Most of the investments were made in majority Malawian ·owned • enterprises, primarily in labor-intensive industry and agro-industry projects • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 4 77-5340.)